This post is courtesy of David Blake, a full time trader from the UK. He can be reached on Twitter.
I always have loved the London open and that harks back to my forex trading days. ETH (extended trading hours) often has a simpler rhythm to it, keep an eye of what the European markets are doing and follow the stock markers of VWAP (volume weighted average price), VPOC (volume point of control) and of course SpotGamma levels or as I affectionately call them the ‘unicorn’ levels.
Today was a great 101 case in point to me, we had a Combo Level at 4369 and as you’ll see from the chart the area was also well supported (or you could say because of the Combo it was supported) and from here we slowly but surely rallied up over 10 handles and towards some resting liquidity at 4380 with over 600+ contracts sitting on the book.
I treat all unicorn levels with respect, sometimes they are docile and hardly murmur, and on other occasions they are feisty and will kick very hard so be warned, and so as I will often say trading the markets without them on the chart is like driving a fast car without a safety belt…………. Damn right dangerous!